Entry tax on sugar to protect manufacturing companies passed

CHANDIGARH: The Haryana Assembly on Wednesday passed the Haryana Tax on Entry of Goods into Local Areas (Amendment) Bill, 2008. The Bill was introduced by the excise and taxation minister Birender Singh.

The amendment in Haryana Tax on Entry of Goods into Local Areas Act, 2008, will help the state in consolidating and strengthening the tax base under the Act, said a spokesman of the government.

The purpose behind favouring an amendment in the Act was to bring within the ambit of taxation the activity of sale, especially on sugar being imported into Haryana from outside.

The decision in this direction was taken as imports were adversely affecting the domestic trade and sugar manufacturing industry.

The state tax is proposed to be levied on entry of goods, especially petroleum-based fuels like petrol and diesel, into local areas at a higher rate, so that the combined effect of tax on interstate purchases and entry tax is at par with VAT rate applicable under the Haryana VAT Act.

This provision is introduced with a view to plug the import of diesel and other petroleum-based fuels by the industries or other commercial units at concessional rate against form 'C', which undermine the revenue base of the state.

The gravity of the issue may further aggravate with the phasing out of the central sales tax (CST).

Further, in case of petroleum-based fuels, diversion of such fuels in non-manufacturing activities, including for private vehicles, and consumption for office and domestic use, cannot be ruled out and hence entry tax at the higher rate (difference of VAT rate and CST rate) may have been the only device left with the state to curb such practices.

source:timesofindia